Broadcasting Decision CRTC 2016-339 PDF version References: Part 1 applications posted on 8 September 2015 Part 1 renewal applications posted on 26 January 2016 Ottawa, 23 August 2016 Cogeco Diffusion inc. Gatineau, Sherbrooke and Trois-Rivières, Quebec Application 2015-1023-0, 2015-1024-8, 2015-1026-4, 2015-1012-3, 2015-1011-5 and 2015-1009-0 CKOF-FM Gatineau; CFGE-FM Sherbrooke and its transmitter CFGE-FM-1 Magog; CJEB-FM Trois-Rivières – Licence renewals and amendments The Commission approves the applications by Cogeco Diffusion inc. (Cogeco) to delete the condition of licence requiring the French-language commercial radio stations CFGE-FM Sherbrooke and CJEB-FM Trois-Rivières to devote at least 45% of all content category 2 (Popular Music) musical selections aired during the broadcast week to Canadian selections broadcast in their entirety. The Commission denies the application by Cogeco to harmonize the conditions of licence for the French-language specialty commercial radio station CKOF-FM Gatineau with those for CHMP-FM Montréal, another spoken word station. Lastly, the Commission renews the broadcasting licences for CKOF-FM, CFGE-FM and its transmitter CFGE-FM-1 Magog, and CJEB-FM, from 1 September 2016 to 31 August 2023. Applications 1. Cogeco Diffusion inc.1 (Cogeco) filed applications requesting: • to harmonize the conditions of licence for the French-language specialty commercial radio station CKOF-FM Gatineau with those for CHMP-FM Montréal, another spoken word station, but retain the condition of licence allowing it to operate CKOF-FM in accordance with a local sales agreement2 until 31 August 2019; 1 Cogeco Diffusion inc. changed its name to Cogeco Media Inc. in February 2016. 2 See Broadcasting Decision 2015-302. • to delete the condition of licence requiring the French-language commercial radio stations CFGE-FM Sherbrooke and CJEB-FM Trois-Rivières to devote a minimum of 45% of all content category 2 (Popular Music) musical selections aired during the broadcast week to Canadian selections broadcast in their entirety; and • to renew the broadcasting licences for CKOF-FM, CFGE-FM and its transmitter CFGE-FM-1 Magog, and CJEB-FM, which expire 31 August 2016. 2. The Commission received a comment on the applications from the Association québécoise de l’industrie du disque, du spectacle et de la vidéo (ADISQ) in regard to the renewal applications for CFGE-FM and CJEB-FM, as well as an intervention in opposition from ADISQ in regard to the applications to amend the conditions of licence for these two stations. The applicant replied to the interventions. ADISQ’s interventions and the applicant’s reply are addressed further in this decision. The public record for this proceeding can be found on the Commission’s website at www.crtc.gc.ca or by using the application numbers provided above. CKOF-FM – Licence amendments 3. Cogeco proposed to harmonize the conditions of licence for CKOF-FM with those for CHMP-FM, another specialty spoken word station. This harmonization would mean that CKOF-FM would no longer be subject to the following conditions of licence: • In each broadcast week, the licensee shall broadcast no less than 50 hours of local programming.3 • In each broadcast week, the licensee shall broadcast no less than 24 hours and 46 minutes of spoken word programming. • In each broadcast week, the licensee shall broadcast no less than 4 hours and 20 minutes of news programming.4 4. Cogeco stated that this amendment would harmonize the conditions of licence for all of its spoken word stations. It added that CKOF-FM currently broadcasts 62.5 hours of local programming per broadcast week, including 50 hours of local spoken word programming and 6 hours 40 minutes of local newscasts. While the licensee intends to maintain these levels, it would like to have the flexibility to reduce the current level of local programming if its efforts to increase the station’s listenership and reduce its significant operating losses do not yield the expected results in the medium term. Cogeco stated that its network programs and network sports programs would continue to address issues of interest to the entire community and not only to the audience of its flagship station in Montréal. 3 Should the application be approved, the station would still be required to broadcast 42 hours of local programming per broadcast week, in accordance with Broadcasting Regulatory Policy 2009-62. 4 Should the application be approved, Cogeco undertook to maintain such a commitment. Commission’s analysis and decision 5. The three conditions of licence listed in paragraph 3 were imposed in Broadcasting Decision 2011-381 as part of the transfer of effective control of various stations from Corus Entertainment Inc. to Cogeco.5 Specifically, the Commission granted Cogeco an exception to the Common Ownership Policy but required, as a condition of approval, that Cogeco abide by enhanced conditions of licence for CKOF-FM (formerly CJRC-FM) related to local programming, spoken word programming and local news. These were originally set out in Broadcasting Decision 2009-525. The Commission had specified at the time that the enhanced conditions of licence would ensure that the radio programming broadcast in Gatineau would be distinct from that of Cogeco’s Montréal flagship station. 6. While CKOF-FM would still be required to devote more than 50% of its programming to programs from content category 1 (Spoken Word), the Commission considers that the removal of the three conditions of licence could result in an increase in network programming from the Montréal flagship station and a reduction of the local flavour of the station. The Commission also considers that deleting the conditions of licence imposed in Broadcasting Decision 2011-381 would, in general, undermine the integrity of the process leading to the station’s transfer of control that occurred in 2010. 7. In light of the above, the Commission does not consider it appropriate to delete the conditions of licence. However, as accepted by Cogeco should the applications be denied, the Commission amends the conditions of licence imposed in Broadcasting Decision 2011-381 to more adequately reflect its intentions relating to local programming, spoken word programming and local news (additions are in bold): • In each broadcast week, the licensee shall broadcast no less than 50 hours of local programming. • In each broadcast week, the licensee shall broadcast no less than 24 hours and 46 minutes of spoken word programming of direct relevance to the community served. • In each broadcast week, the licensee shall broadcast no less than 4 hours and 20 minutes of local news programming. CFGE-FM and CJEB-FM – Licence amendments 8. Cogeco requested the deletion of the condition of licence6 requiring CFGE-FM and CJEB-FM to devote a minimum of 45% of all content category 2 (Popular Music) musical selections aired during the broadcast week to Canadian selections broadcast in their entirety. 5 The Commission approved this transaction in Broadcasting Decision 2010-942. 6 See condition of licence 2 set out in Appendix 7 to Broadcasting Decision 2010-322. 9. Cogeco stated that deleting this condition would harmonize the station’s regulatory obligations relating to broadcasting of Canadian musical selections and French-language vocal music (FVM) with those of its station CFGL-FM Laval, the source of some programming broadcast on all of Cogeco’s Rythme FM network stations. 10. Cogeco maintained that this change is not intended to reduce the quantity of Canadian musical selections being aired, since the vast majority of French-language musical selections broadcast by its stations are Canadian, thus ensuring that the current obligations are met or exceeded. Interventions and reply 11. In its intervention in opposition to the applications for licence amendments, ADISQ submitted that the condition of licence relating to Canadian content was imposed following a competitive licensing process in 2003, when the Commission reviewed 21 applications for new licences. ADISQ argued that the Canadian content commitment was a deciding factor in the Commission’s decision. 12. In addition, ADISQ indicated that Cogeco did not cite any difficulties in complying with this condition of licence or raise any financial issues resulting from this condition. ADISQ pointed out that at the present time, both stations easily surpass the current requirement (45%) set out in the condition of licence. 13. In its intervention regarding the licence renewal applications for CFGE-FM and CJEB-FM, ADISQ made general comments about the use of montages by commercial stations and repeated its opposition to the licence amendment applications for the above stations, without however opposing the renewal of the licences for a full seven-year licence term. 14. Cogeco replied that after 12 years of operations, it is no longer necessary to maintain this condition since the stations’ FVM broadcast requirements ensure that the percentage of Canadian musical selections broadcast each broadcast week greatly exceeds the obligations set out in the Radio Regulations, 1986 (the Regulations) as well as those set out in the condition of licence it is requesting to delete. Commission’s analysis and decision 15. Should the application be approved, CFGE-FM and CJEB-FM would still be subject to the Canadian content broadcast requirements set out in the Regulations: • 35% of its musical selections from content category 2 devoted to Canadian content during the broadcast week and from 6:00 a.m. to 6:00 p.m., Monday to Friday; • 65% devoted to FVM during the broadcast week and 55% devoted to FVM from 6:00 a.m. to 6:00 p.m., Monday to Friday. 16. Based on the Commission’s most recent monitoring of the stations in September 2015, CFGE-FM and CJEB-FM both exceeded 45%, the percentage of Canadian content required by condition of licence (57.4% and 57.3% respectively).